Student loan debts tops $1 Trillion (NY Daily News)

Discussion in 'Lounge' started by Drew Wilson, Mar 23, 2012.

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  1. Drew Wilson

    Drew Wilson AKA IceCube Staff Member Moderator Contributor

    Students now owe a trillion dollars in loan debt.

    The combination of more students heading to college and ever-increasing costs of public and private higher education means more Americans are taking on debt that will take years to pay back, says the Consumer Financial Protection Bureau.

    Due to congressional cost cutting, there’s also less money for students, outside of loans.

    “It’s the failure of state and federally subsidized grants to keep pace with the rising cost of higher education,” said Mark Kantrowitz, financial aid expert and founder of FinAid.com.

    The average debt of a student who graduates college with a bachelor’s degree is $27,220.

    More...

    This sort of thing drives me nuts here in Canada. Whenever students complain about rising student debt, we're told to work harder and stop complaining. Whenever we protest, the media considers us trouble-makers who are too greedy. Then, when we go out in the work force and can't find work because young unemployment is almost 15% and rising, we're told we're lazy. As far as politicians are concerned, well, forget it, we don't matter because there's more people who are retired to be concerned about. Grr!::cursing:
  2. Theinfamousone

    Theinfamousone Krell's Hitman Established Member

    This is huge. I read a great article on Yahoo finance about this recently. They called rising student loan debt the quiet killer. Yes, it won't cause a financial meltdown like 2008, at least not all at once. But even under the best circumstances that debt will lead to less disposable income later on than previous generations have enjoyed, and then it ultimately leads to less ability to save for retirement. I'm 27, I have a BS and I'll be finishing up my graduate work in 2015. Well with $130,000 that I'll carry in debt, continuously compounding interest, most of which is compounding as soon as I get it (starting last fall). I'll graduate at 31. If I finally pay it off at $15,000 a year, I'll be almost 50 by the time I can start saving money. Then I've got no time to save for retirement. Assuming I'm in perfect health and can work until I'm 68-70 or something, then I may be ok. While this is pretty simplified, I'm just illustrating the point. My school added mandatory health insurance on their "special" insurance plan that has a $2,000 deductible. This adds an extra $4,500 a year for the 4 years. They told us that at the beginning of the school year it would be required (surprise!). This is on top of the student health center fees (which run about $800/year). The administration don't understand why I'm freaking out about this ridiculous insurance policy being mandatory. Including interest and lost interest earnings on my retirement (which would've compounded over my lifetime) we're talking probably $70,000 for something that I can't even use.
  3. Drew Wilson

    Drew Wilson AKA IceCube Staff Member Moderator Contributor

    That is a frightening, but all too common story (at least, from what I hear) in the US. I wish there was something I could do to help people like you, but... well... I'm not much better off myself right now. :sad:

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